As the inventory of a firm falls
A) there is no change in its capital.
B) its intangible capital decreases.
C) its tangible capital decreases.
D) its social capital increases.

Question

Quizplus · Accepted Answer

As the inventory of a firm falls, its tangible capital decreases because inventory is considered a part of a firm's tangible assets. Tangible capital includes physical assets like inventory, machinery, buildings, and vehicles.

As the Inventory of a Firm Falls